Answer:
True
Explanation:
The FASB's norms (FASB Accounting Standards Update No. 2014-15
, August 2014) state that management is responsible for evaluating the conditions necessary for the company to continue operating and meeting its obligations within one year after the financial statements have been prepared.
Under the GAAP, management should continue to prepare financial statements as long as the company is able to operate until the company's liquidation is imminent. The going concern accounting principle states that the company will continue operating for the foreseeable future.
Answer:
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Explanation:
A potential risk is confusing the customers - customers have brand loyalty and recognition based off of the look and familiarity of packaging. They might always reach for the "green tic tacs" without even knowing the official flavor because they are familiar with the color, and changing the packaging could affect that.
However, a potential benefit of changing the packaging is attracting new customers who would have otherwise overlooked the product. Making the packaging new and exciting might entice new people to become buyers.
A good way to test this would be with focus groups, which are groups of people who you ask to pretend to be the customer and give you feedback on the idea. Focus groups are a good way to learn the good and bad perceptions about a change before it is put into effect.
Answer:
B. $228,122.
Explanation:
Number of quarters = 3 * 4 = 12
Quarterly interest rate = 12%/4 = 3%
From the table, the correct discounting factor for the future value (FV) = 1.42576
We then have:
FV = $160,000 * 1.42576 = $228,122
Therefore, the maturity value of the CD is $228,122.
